UK's Broad Ring-Fencing Proposal May Outshine Volcker Rule

Law360, New York (June 14, 2012, 7:41 PM EDT) -- The U.K. on Thursday unveiled a proposal to fence off retail banking operations from riskier investment banking activities, a move experts say is stiffer than the proposed U.S. ban on proprietary trading, but one that may be more likely to prevent bailouts.

The proposal to “ring-fence” retail, consumer banking targeted at individual consumers and small businesses from investment banking activities is aimed at preventing banks from taking risks that they cannot handle, and to protect taxpayers and depositors when they do. The Dodd-Frank Act's proposed ban...